Small Caps Podcast with Paul Scott – Episode 27

Paul Scott runs through the small cap news for this last, shortened, week of 2022. Plus some thoughts about the year, and the outlook.

As always these are opinions, not advice. Please always do your own research.


  • HNY Paul! Excellent as always. Interesting hearing a different perspective on SLP, which I’d been researching. I have a no resource stocks rule, but recently bent them to add SLP to my new income portfolio for some “diversity” (that’s how I justify it) with some profits from LOAD (where I still hold hoping for a rival bid). It is a green play as we potentially move to a hydrogen economy where platinum should be a vital component. If I’m wrong then there should at least still be a decent and secure divi to make up for it. Cheers

  • Paul many thanks for the podcasts which I look forward to listening. I have a few comments on Saga to share with you and the other listeners.
    Saga up until pandemic has always been a substantial cash generator. Driver behind this has been insurance where it acts as a broker and also takes a share of any of the underwriting profits. The underwriting profits have turned to losses as a result of higher claims costs ( particularly motor) and in my opinion incorrect pricing across the motor insurance industry following regulatory changes. Insurance pricing of risks across the market are moving up again and so the the underwriting swings back to profit. The cruise travel business across the globe is recovering and Saga has positioned itself aiming at the more luxury end of the market offering high end holidays to wealthier UK pensioners. The insurance brokerage income will always provide steady cash flows and so the business ought to recover. It would be really useful to see what the driver is behind the latest broker forecasts. The concern would be if the cruise business were the cause of the change to breakeven for current year as this is where the cash/ loan repayment gearing would be impacted. I would expect to see an RNS issued by the company if it now expects a breakeven position.

  • POLX share price – stale bulls selling out while they can perhaps

    • Justin Waite and his hype machine stuffed POLX with many, many weak hands. It seems they are clearing out, as in the cold light of day his 100x share price prediction for POLX now looks a tad aggressive. Having influenced many novice investors to enter the world of microcaps and illiquidity, he has now cut many of his small and microcap positions, he has come to the conclusion that small caps are a bit spicy for his liking. On the brighter side we can thank him and his ilk for some of the crazy bargains we see today in smallcap land.

      The investing world world needs more Pauls and less Justins, in my view.

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